Identity theft insurance was almost nonexistent until a few years ago, when identity theft became the fastest growing crime in the U.S. Identity theft insurance policies typically cover expenses associated with identity theft, which can range anywhere from hundreds to thousands of dollars, depending on the extent of the crime. Expenses can range from long-distance telephone bills to attorney fees. This insurance is relatively inexpensive, according to insurance experts, and it can be obtained through homeowners insurance, stand-alone policies (from $59 to $180 with some insurance providers), and through credit cards (as an optional benefit). Identity theft protection companies also offer access to insurance as a part of identity theft protection plans.
If you are looking into insurance as protection from identity theft, there are some things you should know. Look for low deductibles, reimbursement for lost wages, travel, coverage of legal fees, and the cost of rejected loan applications. Be sure to find out the extent of coverage when considering a policy - look for one that will cover multiple identity theft situations. Some insurance policies offered by identity theft protection agencies only cover identity theft as the result of services they failed to provide. Read the policy carefully before making a purchase. Regulations vary from state to state, and coverage may not be available in certain locations. Insurance can help, but protecting your identity is the first step in avoiding identity theft in the first place.
